"According to the new conceptual framework, the two fundamental qualitative characteristics of useful information are:"

		relevance and faithful representation.
		materiality and relevance.
		timeliness and understandability.
		comparability and verifiability.

"In relation to manager-lender agency relationships, the following is true, except:"

		Debt covenants cannot be used to reduce the problem of excessive dividend payments to owners.
		Debt covenants can be used to protect the interests of lenders.
		Price protection occurs where the lender may charge a higher interest rate to compensate for credit risk.
		Credit risk is the risk that the borrower may not honour its obligations to repay borrowed funds with interest.